The B20 2024 Integrity and Compliance task force has identified three critical tasks for the accountancy profession, setting the tone for future regulation and government action.  

The Institute of Chartered Accountants in England and Wales (ICAEW) is a network partner to the task force, which actively engages in discussions associated to anti-corruption measures, ethical business practices, compliance with regulations, and the promotion of corporate governance. 

B20 Brazil’s members span global businesses that bring together the compliance, accountancy and legal professions. 

The summit, which convened business leaders and G20 governments in São Paulo, Brazil last week, focused on sustainability reporting, ethics in AI, and anti-corruption measures.  

The task force’s policy paper, discussed at the summit, identifies three key areas for the profession’s scrutiny.  

It underscores the importance of sustainable governance, as highlighted in the 2023 OECD/G20 Corporate Governance Principles, and the need for accountants to enhance the governance of sustainability programmes.  

The paper advocates for an expanded role for both external and internal audit in sustainability assessments, recommending a broadening of internal audit scope to encompass internal controls over sustainability reporting. 

The task force also emphasised the necessity of providing targeted technical assistance for small and medium-sized enterprises (SMEs).  

It suggested funding advisory services to aid SMEs in managing the complexities of sustainability reporting.  

Brazil’s Sebrae, a government-funded mentoring and support programme for SMEs, was cited as a potential model for offering practical advice and mentoring to facilitate SMEs’ sustainability reporting efforts. 

Furthermore, the task force argued that compliance with regulation is not enough to ensure high-quality sustainability reporting.  

It highlighted the importance of ‘ethical leadership’, an approach that is claimed to involve intentional actions, active listening, and defining personal and professional values.  

A portion of the task force’s recommendations was dedicated to providing practical resources for SMEs, which make up 62% of Brazil’s economy.  

Among these resources was the World Economic Forum’s new business integrity toolkit, designed to support the United Nation’s Sustainable Development Goal 16 by promoting accountable and inclusive institutions. 

The outcomes of the B20 Summit will culminate in a communique to the G20 meeting in November, which will indicate which recommendations will be transformed into inter-governmental commitments.  

Additionally, the ICAEW is participating in the ongoing exchange of information and best practices fostered by the relationships and partnerships established during the summit.  

The next B20 and G20 summits are set to take place in South Africa in 2025. 

Earlier in October 2024, the ICAEW voiced concerns regarding the UK government’s new legislation aimed at addressing late payments to small businesses and the self-employed. 

It cautioned about the potential implications of enforcing reporting requirements within annual reports.